The CCI, it claimed, acknowledged that Oyo was a hotel chain and not an online travel agency and was not in a dominant position. The CCI also said the hospitality chain was not engaged in any predatory pricing and was neither charging exorbitant commissions from partner hotels, it said.
However, the CCI has not given clean chit to the the hospitality chain on the issue of predatory pricing and said it would be investigated along with other issues after getting proper cost structure of online booking platforms and hotels.
Similarly, on unfair unfair commissions the CCI said it would be dealt with after market structure, cost structure and entry conditions of platforms was investigated.
On the basis of FHRAI complaint against MakeMyTrip India, Go-Ibibo and Oyo, the CCI in its order on Monday favoured investigation pertaining to alleged violation of the provisions of section 3(4) of the Competition Act.
It expressed concern whether Oyo's contractual relationship with MMT, as part of an arrangement, had an adverse effect on competition.
OYO said it was ready to extend full support for the investigation. "We are thankful for the CCI's recognition that Oyo is a hotel chain and for dismissing certain prima facie allegations regarding price parity, predatory pricing, exorbitant commissions, etc," said an Oyo spokesperson in a statement.
The CCI also gave clean chit to OYO on the issue of misrepresentation of information involving fake bookings saying the hotel chain had not been found to be dominant in the market it operated.
( With inputs from IANS )